Opinions are worth the price you pay for them it is said, and in the stock market game there are a lot of free “ideas” everywhere you turn. It really is a game the way analysts raise and lower their target prices for stocks and you can really be left shaking your head if you listen to too many of them.
Apple is by far the most talked about company on Wall Street and the speculation seems to be at a fever pitch after the stock has dropped from $700 to the low $500’s in recent months. Analysts who were falling all over themselves to keep raising their target price are now in a competition to see who can expose the latest reason the stock (and even the company) will die. It is a joke and a good read on this can be found right here.
Now days there are so many sources for stock information: television, Internet, magazines, newspapers, and radio. Most people presumably get most of their stock news from the TV and Internet and it is on those delivery channels that there is an overload of free stock picks from the “pros”.
How many different authority stock websites are out there? Dozens at least and they all have their “analysts” espousing their take on the market and individual stocks. In many cases, you can get their opinions for free and 9 times out of ten I would guess you, the everyday investor type, has no idea who these people really are or what their credentials are. Why then should you listen to them?
If you want to learn how to buy and sell stocks and be successful at it, you have to learn how to tune out the fluff and figure out which of these guys (analysts) really knows what they are talking about. The best way is to form your own opinion first and get your own ideas yourself, then go see what other people are saying about the companies you choose.
Analysts truly are a dime a dozen now and many of them will change course and go with the herd at the drop of a hat. To be an analyst all you have to do in the current environment is have a camera in front of you and rephrase what everyone else is saying. You have to be extra careful before you pull out your hard earned dollars because you believe one of the stock picks given to you by one of the current crop of analysts.